Tumi Holdings (TUMI) Shares Rally on Possible Samsonite Takeover
Shares of Tumi Holdings Inc. (TUMI) were trading up +8.02 or +39.84 percent to $28.10 in Thursday’s premarket after news that the company was nearing a deal for its acquisition by Samsonite International SA. Tumi Holdings Inc. stock closed at $20.13 per share, up +0.33 or +1.67 percent in Wednesday’s regular trading session.
South Plainfield, New Jersey based Tumi Holdings Inc. was founded in 1975 by Charlie Clifford after he served in the Peace Corps in Peru.
Founded in 1910 as the Schwayder Trunk Manufacturing Company in Denver, Colorado, Mansfield, Massachusetts based Samsonite International S.A is the world’s largest luggage manufacturer. The company began using the Samsonite trademark in 1941 and changed its name to Samsonite in 1966. Samsonite International is known for producing a number of major luggage brands including American Tourister, High Sierra, Hartmann Luggage and Speck Products in addition to its Samsonite namesake brand. Samsonite has been bought and sold a number of times and raised $1.25 billion in an initial public offering in Hong Kong in June of 2011. The company has a registered office in Luxembourg and its stock is listed on the Hong Kong Stock Exchange.
According to a report in the Wall Street Journal yesterday citing anonymous sources familiar with the matter, the two companies could announce a deal as early as this week. Samsonite stock was suspended from trading on the Hong Kong Stock Exchange yesterday after falling -1.1 percent and recovering its losses. The company did not give a reason for the trading halt.
While exact terms of the deal were not yet available, Tumi Holding Inc. could be valued as high as $2 billion based on the company’s current $1.4 billion market value and a “typical premium”, according to the Journal. A spokesman for Samsonite declined to comment on the matter, while calls to Tumi’s public relations department were not answered outside of normal U.S. business hours.
Tumi Holdings reported earnings for its most recent quarter on February 24th. The company reported earnings per share of $0.38 versus $0.35 per share in the same period one year ago. Revenue came to $167.66 million. Analyst expected the company to report earnings per share of $0.32 on revenue of $164.37 million.
Tumi Holdings stock has gained significantly in this morning’s premarket, rallying from $23 per share to about $28 per share. The stock will open well above its previous 52-week high of $25.47 per share. Tumi shares could trade higher today as speculation on the takeover price has already added significant volatility in premarket trading.
Other News About TUMI
Tumi Stock Jumps on Earnings Beat
Stock gained over six percent after releasing earnings last week.
Tumi Holdings, Inc. – Value Analysis (NYSE:TUMI) : February 18, 2016
Capitalcube’s analysis compares the valuation of major competitors including Coach Inc, Nordstrom Inc. and others.
Other Stocks in the News
Herbalife's stock plunges after disclosure of new member growth reporting errors
Herbalife stock was off more than 13 percent in this morning’s premarket.
Costco Adds to Concerns With Latest Weak Quarter
Costco missed earnings forecasts by $0.04 per share while revenue came in as expected.